RC puts onus back on individual: BFO
While industry codes of ethics will play a pivotal role in keeping financial institutions in line, the Board of Banking and Finance Oath (BFO) says the Royal Commission has placed the real onus back on the individual to practice ethical decision-making and accountability.
The BFO said it would prioritise its discussions with institutions and industry bodies on strengthening the ethical foundations of the financial services, something they believe the Oath, a set of commitments that individuals can adopt as personal principles, has done.
The industry body said it aims to encourage a strong ethical framework for individuals in the financial services industry, given the values of integrity and honesty came into question during the Royal Commission.
BFO chair, John Laker, said the final report was a clarion call to the financial services industry to prioritise ethical decision-making and individual accountability in its dealings with the Australian community.
“This is the time for individuals committed to the good of the industry to reflect on what they want to stand for and take responsibility for their own behaviour,” he said. “We know the right culture – one built on ethics, honesty and accountability – allows the right behaviour to thrive.”
AUTHOR
Anastasia Santoreneos
Recommended for you
The new financial year has got off to a strong start in adviser gains, helped by new entrants, after heavy losses sustained in June.
Michael McCorry, chief investment officer at BlackRock Australia, has detailed how investors are reconsidering their 60/40 portfolios as macro uncertainty highlight the benefits of liquid alternatives.
Having reset its market focus to high-net-worth advisers, Praemium’s administration solution has been selected by Bell Potter in a deal that increases the platform's funds under administration by $6 billion.
High transition rates from financial advisers have helped Netwealth’s funds under administration rise by $3.7 billion in the fourth quarter of FY25.
